Research Article
Legitimacy Problems in Sharia Compliance Due to Fraud at Islamic Banks in Indonesia
@INPROCEEDINGS{10.4108/eai.20-10-2021.2316355, author={Sucipto Sucipto and Erwin Saputra Siregar and Mellya Embun Baining and Nurjanah Nurjanah and Muhammad Rezki}, title={Legitimacy Problems in Sharia Compliance Due to Fraud at Islamic Banks in Indonesia}, proceedings={Proceedings of the 4th International Colloquium on Interdisciplinary Islamic Studies in conjunction with the 1st International Conference on Education, Science, Technology, Indonesian and Islamic Studies, ICIIS and ICESTIIS 2021, 20-21 October 2021, Jambi, Indonesia}, publisher={EAI}, proceedings_a={ICIIS AND ICESTIIS}, year={2022}, month={2}, keywords={fraud sharia compliance agency legitimacy islamic bank}, doi={10.4108/eai.20-10-2021.2316355} }- Sucipto Sucipto
Erwin Saputra Siregar
Mellya Embun Baining
Nurjanah Nurjanah
Muhammad Rezki
Year: 2022
Legitimacy Problems in Sharia Compliance Due to Fraud at Islamic Banks in Indonesia
ICIIS AND ICESTIIS
EAI
DOI: 10.4108/eai.20-10-2021.2316355
Abstract
This research explains the problem of sharia compliance that fraud cases eroded in 2015 to 2019 in Islamic banks in Indonesia. In comparison, the level of Islamic bank's financial performance in Indonesia, which is categorized in good condition, cannot explain the situation of sharia compliance. This study uses fraud as a dependent variable that results in a decrease in the legitimacy of sharia compliance but not with the financial performance of Islamic banking. Sharia compliance is a matter of legitimacy and a value of Agency where perceived in the variables of this research. At the same time, the independent variables of this study are proxies in the Islamic income ratio, profit sharing ratio, Islamic investment ratio, zakat performance ratio, equitable distribution ratio, and director employee welfare ratio. This study used 11 Islamic commercial banks with a research period from 2015 to 2019, and the sample used amounted to 41. The method used is multiple regression analysis of panel data. The results showed that IsIR, PSR, IIR, and DEWR positively affect indications of fraud in Islamic banks in Indonesia.